Page 124 - GHES-2-1

Global Health Econ Sustain Prolonged impact of health-care expenditure on poverty

It was $1,080 per capita and almost 10% of the GDP in Acknowledgments
2017. The health segment extends at a faster rate than the
economy does. Between 2000 and 2017, worldwide health None.
investment developed in genuine terms at 3.9% every year, Funding
whereas the economy developed by 3.0% per year. Middle-
income nations are quickly merging towards higher levels None.
of investing in health, which expanded by 6.3% per year
between 2000 and 2017, whereas the economy expanded Conflict of interest
by 5.9% per year. Meanwhile, investing in health in The authors declare that they have no competing interests.
low-income nations has expanded by 7.8% every year
(Hernández-Peña, 2019). Compared to the results of this Author contributions
study, it appears that increased healthcare use is driving Conceptualization: Mehdi Seraj, Fawzia Mohammed Idris
the rise in poverty rates, thereby limiting overall economic Formal analysis: Mehdi Seraj
development. Conversely, the widely recognized challenge Investigation: All authors
of escalating government spending on healthcare, Methodology: Fawzia Mohammed Idris
without due consideration for factors such as thorough, Supervision: Huseyin Ozdeser
efficient, and effective resource utilization, can exacerbate Writing—original draft: Fawzia Mohammed Idris
these consequences. For instance, while the Sustainable Writing—review and editing: Mehdi Seraj, Fawzia
Development Goals (SDGs) prioritize advancements in Mohammed Idris
health, placing a significant emphasis on increased health
financing, there is a potential oversight regarding the Ethics approval and consent to participate
critical importance of optimizing resources for sustainable
health outcomes. An important indicator in this matter is Not applicable.
the high percentage of spending on health in lower- and Consent for publication
middle-income countries; expanded spending on health
has a persistent positive impact on the increment within the Not applicable.
poverty rate and moderate financial development relative
to health-care expenditure. A study by the WHO (2003) Availability of data
specified spending on health mechanisms: peer weight, The data utilized in this study are annual data from 2000
political economy, production components, and budget to 2018, adding up to 380 observations and recovered from
approach, each of which has specifications and limitations. the World Bank’s official website.
Opportunity costs should be taken into account when
making resource allocations, as this cannot be assumed to References
be a ceteris paribus situation. Hence, the factors related to Amiri, A., & Ventelou, B. (2012). Granger causality between
healthcare expenditure that were highlighted within the total expenditure on health and GDP in OECD: Evidence
discourse of the writing in this study, such as governance, from the toda-yamamoto approach. Economics Letters,
efficient and viable utilization of health-care resources, 116(3):541-544.
and counting medical and economic organization, should https://doi.org/10.1016/j.econlet.2012.04.040
be considered by policymakers to carefully consider the
coordinated and circuitous impacts. Atkinson, A.B. (2019). Measuring Poverty around the World.
Princeton: Princeton University Press.
In conclusion, the analysis revealed a crucial
interconnection between health-care spending and poverty Benmelech, E., & Tzur-Ilan, N. (2020). The Determinants of
Fiscal and Monetary policies During the COVID-19 Crisis.
rates. Increasing health-care expenditures in these contexts NBER Working Papers 27461. Cambridge: National Bureau
may have unintended consequences, potentially exacerbating of Economic Research.
poverty levels. Policymakers should carefully consider
the impact of health-care funding strategies on poverty Campello, M., Kankanhalli, G., & Muthukrishnan, P. (2020).
reduction, aiming for balanced and holistic approaches Corporate hiring under Covid-19: Financial constraints and
the nature of new jobs. Journal of Financial and Quantitative
to address both health outcomes and poverty alleviation. Analysis, 1-79.
Further research and nuanced policy interventions are
necessary to navigate this complex relationship and to https://doi.org/10.1017/S0022109023000522
develop strategies that foster improved health outcomes Cortes, G.S., Gao, G.P., Silva, F.B., & Song, Z. (2022).
without adversely affecting poverty levels. Unconventional monetary policy and disaster risk: Evidence

Volume 2 Issue 1 (2024) 8 https://doi.org/10.36922/ghes.2383